Suppose you start saving today for a $11,000 down payment that you plan to make on a condo in 6 years. Assume that you make no deposits into the account after your initial deposit.

Question

Suppose you start saving today for a  $11,000 down payment that you plan to make on a condo in 6 years. Assume that you make no deposits into the account after your initial deposit. The account has monthly compounding and an APR of 3.6​%. How much would you need to deposit now to reach your $11,000 goal in 6 ​years?

Answer 1

11000= P(1+.036/12)^12(6)

=P(1.003)^72

P=11000/1.003^72= $8,865.95